Strategic Mastery: How GCCs Became India’s Leading Employers of Tech Talent
Founder, Director of Avaali Solutions Pvt Ltd, Ms. Srividya Kannan’s interview published in cxotoday website.
CXOToday has engaged in an exclusive interview with Ms. Srividya Kannan, Founder and CEO, Avaali Solutions
What strategies have GCCs employed to become the top hirers of tech talent in India?
Global Capability Centres (GCCs) have emerged as the top hirers of tech talent in India by employing several key strategies:
Expansion and Innovation Focus: GCCs have significantly increased their hiring by setting up and expanding their innovation centres in India. This shift reflects a growing emphasis on leveraging India as a strategic hub for critical operations and talent acquisition. The surge in demand for tech talent from GCCs, up by 46% in Q1 FY25, highlights their pivotal role in the technology sector.
Competitive Salaries: GCCs have offered substantially higher salaries compared to traditional IT services firms. Over the past 3-5 years, salaries in GCCs have risen by 30-40%, with product-based GCCs offering even more competitive pay—80-100% higher—than their IT services counterparts. This significant salary differential has helped GCCs attract and retain top tech talent.
Focus on Advanced Technology Roles: GCCs have driven hiring in high-demand technology areas such as data engineering, cloud computing, AI, and cybersecurity. This targeted approach has made GCCs particularly attractive to skilled professionals in these emerging fields.
Strategic Talent Acquisition: GCCs have not only increased their overall headcount but have also strategically focused on filling senior-level roles, often attracting talent from traditional IT services firms. This approach has positioned GCCs as leading employers in the technology sector.
Long-term Growth and Revenue Projections: The anticipated growth in GCCs, with numbers projected to rise from 1,600 to 2,400 by 2030 and revenues expected to reach $110 billion, underscores their long-term commitment to expanding their tech capabilities and talent pool.
How does the hiring demand for GCCs compare to that of IT services firms in recent years?
The IT hiring landscape in India has undergone significant shifts in recent years, with Global Capability Centers (GCCs) emerging as major drivers of employment alongside traditional IT services firms. This trend reflects evolving business strategies and technological demands in the global market.
GCC Hiring Trends:
GCCs have shown remarkable growth in their hiring activities. In the first quarter of FY25, 70% of IT hiring originated from GCCs, according to Quess Corp, a leading staffing firm. The company reported a substantial 36% increase in mandate size, primarily driven by GCC demand. The number of GCCs in India has grown exponentially, from 760 in 2012 to over 1,600 by March 2023. These centers are actively recruiting for specialized roles in cybersecurity, enterprise applications, AI/ML, and full-stack development.
Traditional IT Services Hiring:
In contrast, traditional IT services firms are showing signs of recovery after a period of hiring slowdown. Major IT companies have resumed campus recruitment, with the top five firms expected to offer 81,000-88,000 fresher roles in the current financial year.
While GCCs are currently leading in hiring volume and growth rate, both sectors are expected to coexist and expand. GCCs are projected to contribute 3.5% to India’s GDP by 2030, generating $121 billion in revenue. They are focusing on high-skill roles and emerging technologies. Traditional IT services, however, continue to play a crucial role in providing entry-level opportunities and developing a talent pipeline that may eventually feed into GCC roles.
The coexistence of these two models offers diverse career paths for IT professionals in India. GCCs provide opportunities for advanced skill development and direct involvement in global operations, while IT services firms offer a broader base for skill acquisition and career initiation. This dual growth pattern is reshaping the IT employment landscape in India, creating a more dynamic and varied job market for technology professionals.
What skills are GCCs primarily seeking in their new hires, and how do these align with the current job market trends?
GCCs are primarily seeking skills that align with cutting-edge technologies and digital transformation efforts. Based on the information provided and current market trends, the key skills in demand include:
Generative AI (GenAI): This emerging field is a top priority for GCCs, reflecting the rapid advancements in AI technologies and their potential to revolutionize various industries.
Artificial Intelligence/Machine Learning (AI/ML): With 80% of new GCCs prioritizing AI/ML capabilities, these skills are crucial for driving innovation and improving organizational efficiency.
Data Analytics: As companies increasingly rely on data-driven decision-making, proficiency in data analytics is highly sought after.
Cybersecurity: With the growing importance of digital assets and the increasing sophistication of cyber threats, cybersecurity skills are in high demand.
Cloud Computing: As organizations continue to migrate their operations to the cloud, expertise in cloud technologies is essential.
Robotics Process Automation (RPA): Skills in RPA are valuable for streamlining business processes and improving operational efficiency.
GCCs are also prioritizing soft skills that complement technical expertise, such as cross-cultural communication and adaptability, given the global nature of their operations. This holistic approach to talent acquisition and development aligns with the evolving needs of a globalized, technology-driven business environment.
How can educational institutions better prepare students for the evolving demands of the tech industry?
To better prepare students for the evolving demands of the tech industry, educational institutions in India must adopt a multifaceted approach that emphasizes practical skills, industry exposure, and innovative learning methods.
One significant initiative is the recently announced budget scheme promoting internships in top companies. This scheme aims to bridge the gap between theoretical knowledge and practical application, allowing students to gain hands-on experience in real-world settings. By collaborating with leading firms, institutions can facilitate internships that not only enhance students’ technical skills but also develop their professional competencies and soft skills, which are increasingly valued in the tech sector.
Additionally, integrating advanced technologies such as AI and virtual reality into the curriculum can enrich the learning experience. For instance, AI-powered learning platforms can provide personalized education, while virtual labs can simulate real-world scenarios, making complex concepts more accessible and engaging for students.
Furthermore, fostering an entrepreneurial mindset through experiential learning is crucial. Universities should create incubators or labs that allow students to work on projects that mimic industry challenges, thus preparing them for the demands of a rapidly changing job market. This approach not only cultivates innovation but also encourages students to think critically and solve problems creatively.
Lastly, continuous collaboration between educational institutions and the tech industry is essential. By aligning curricula with industry needs and trends, institutions can ensure that graduates are equipped with the relevant skills and knowledge to thrive in the tech landscape. This proactive strategy will ultimately empower students to meet the challenges of Industry 5.0 and beyond
How can we address the challenges faced by women in the tech industry and create a more equitable work environment?
Addressing the challenges faced by women in the tech industry requires a multifaceted approach that targets systemic issues such as gender bias, pay disparity, and lack of representation. Recent studies, including Aon’s 2024 Voice of Women survey, highlight that nearly half of women in India Inc. are considering leaving their jobs due to these issues, with 42% reporting experiences of bias.
Key Challenges
Gender Bias and Discrimination: Women often face significant bias in the workplace, which can hinder their career progression. Aon’s study found that women who experienced bias were 3.5 times more likely to perceive their organizational experience as unfair.
Pay Disparity: Women in tech are frequently paid less than their male counterparts for equivalent roles. This pay gap is exacerbated by a lack of transparency in salary structures and promotion criteria, leading to feelings of inequity among female employees.
Lack of Representation: Women hold only a small percentage of leadership roles in tech, which limits role models and mentorship opportunities for younger women entering the field. This underrepresentation can contribute to a culture where women feel isolated and unsupported.
Strategies for Improvement
Creating Inclusive Work Cultures: Companies should foster an inclusive environment that promotes diversity through training programs focused on unconscious bias, mentorship initiatives, and transparent career advancement pathways.
Flexible Work Arrangements: Implementing flexible work policies can help women balance their professional and personal responsibilities, making it easier for them to stay in the workforce and progress in their careers.
Supportive Infrastructure: Establishing women-specific resources such as mentorship programs, networking opportunities, and support for women returning to work after maternity leave can significantly enhance retention rates.
Government and Corporate Collaboration: Initiatives such as the Indian government’s budget allocation for women’s workforce participation can help create a supportive framework for women in tech. Partnerships between companies and educational institutions can also encourage more women to pursue careers in tech from an early age.
Implementing these strategies can help create a more equitable work environment in the tech industry, ultimately leading to higher retention rates and a more diverse workforce
How are AI, machine learning, and hyper-automation transforming the operations and hiring practices of GCCs?
AI, ML and Hyper-automation technologies streamline processes, enhance decision-making, and improve employee engagement, leading to increased efficiency and innovation.
AI Transformations
Robotic Process Automation (RPA): AI enhances RPA by automating repetitive tasks such as data entry and invoice processing, reducing human error and operational costs. This integration evolves RPA into Intelligent Process Automation (IPA), capable of handling complex tasks and unstructured data through Natural Language Processing (NLP) and machine learning algorithms.
Customer Insights and Personalization: AI analyzes customer data to personalize interactions and optimize marketing strategies, improving customer satisfaction and engagement across various sectors.
Machine Learning Applications
Predictive Analytics: ML algorithms analyze historical data to forecast trends, enabling GCCs to optimize resource allocation and anticipate market changes.
Continuous Learning: GCCs foster a culture of experimentation with ML, allowing for ongoing improvements in processes and operational efficiency through iterative learning and adaptation.
Hyper-Automation Use Cases
Employee Empowerment: Hyper-automation democratizes technology by enabling employees to create custom solutions with low-code platforms. This includes automating HR processes like onboarding and performance evaluations, significantly reducing onboarding times and enhancing productivity.
Centre of Excellence (CoE): Establishing a CoE promotes innovation and best practices in automation, ensuring teams are well-trained and capable of leveraging new technologies effectively.
These advancements not only streamline operations but also reshape hiring practices by emphasizing skills in AI, ML, and automation, thus attracting talent adept in these areas. GCCs that effectively harness these technologies position themselves as leaders in digital transformation, driving innovation and operational excellence.
What emerging trends or disruptive technologies do you foresee shaping the future of the tech industry in India, and how can companies prepare for these changes?
Artificial Intelligence (AI)
Another disruptive technology that is poised to shape the future of the tech industry in India is artificial intelligence (AI). AI has already made significant strides in industries such as healthcare, finance, and retail, and is expected to continue transforming various sectors in the coming years. With advancements in natural language processing, computer vision, and robotics, AI-powered solutions have the potential to automate routine tasks and improve decision-making processes. To prepare for this trend, companies can start by identifying areas within their operations where AI can be applied to increase efficiency and reduce costs. They should also invest in building a diverse team with expertise in AI development and implementation.
Disinformation Security
As access to technology becomes more widespread, the spread of false information or disinformation has become a growing concern. With the rise of social media and instant communication platforms, disinformation can be easily circulated and amplified, leading to potentially damaging effects on individuals and companies. In response, tech companies need to take responsibility for detecting and preventing the spread of disinformation. This involves leveraging advanced analytics and artificial intelligence to identify fake news and implementing stricter content moderation policies. Companies also have a role to play in promoting digital literacy among their users to help combat the spread of disinformation.
5G and IoT
The rollout of 5G technology will enable faster data transfer and connectivity, facilitating the growth of the Internet of Things (IoT). With the increasing number of connected devices, from smartphones to home appliances, companies have access to vast amounts of data that can be used to improve their products and services. In addition, IoT has the potential to create new revenue streams as companies can offer subscription-based services or leverage data monetization opportunities. To prepare for this trend, companies should focus on developing secure and reliable IoT solutions while also investing in building a strong infrastructure capable of handling large volumes of data.
Advanced Analytics
Advanced analytics is likely to play a crucial role in shaping the future of the tech industry in India. With an increasing volume of data generated from various sources, companies are now looking to harness this information for strategic decision-making and enhanced customer experiences. This involves the integration of machine learning and artificial intelligence to uncover trends and patterns that were previously undetectable, leading to more informed business strategies. To prepare for this shift, companies should invest in upskilling their workforce in data science and analytics methodologies. Additionally, creating robust data governance frameworks will ensure that organizations can effectively manage and protect their data assets while leveraging advanced analytics to drive innovation and competitive advantage.
Cybersecurity Innovations
With the rise of advanced technologies and interconnected devices, cybersecurity has become a critical concern for companies in the tech industry. As cyber threats continue to evolve and become more sophisticated, it is crucial for companies to stay ahead of these challenges by investing in innovative security solutions. This includes implementing artificial intelligence and machine learning for threat detection and prevention, as well as creating robust data encryption methods to protect sensitive information. Additionally, companies should prioritize regular vulnerability assessments and employee training programs to maintain strong cybersecurity practices.
Preparation Strategies
To navigate these changes, companies must:
Cultivate a Culture of Continuous Learning: Encourage employees to upskill and adapt to new technologies.
Foster Collaboration: Partner with startups and innovation hubs to gain insights into emerging technologies.
Monitor Trends: Stay informed about technological advancements and market shifts to identify potential disruptive technologies early on.
By proactively embracing these trends, Indian companies can position themselves for future success in the evolving tech landscape.